WMATA receives $42.5M for transit services, awarded via sole-source contract

Contract Overview

Contract Amount: $42,481,323 ($42.5M)

Contractor: Washington Metropolitan Area Transit Authority

Awarding Agency: Department of Transportation

Start Date: 2014-09-23

End Date: 2015-09-30

Contract Duration: 372 days

Daily Burn Rate: $114.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: IGF::OT::IGF - OTHER FUNCTIONS FY 15 WASHINGTON METRO AREA TRANSIT AUTHORITY (WMATA)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $42.5 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: IGF::OT::IGF - OTHER FUNCTIONS FY 15 WASHINGTON METRO AREA TRANSIT AUTHORITY (WMATA) Key points: 1. Contract awarded without competition, raising questions about potential cost savings. 2. Pricing appears to be fixed, but a lack of bids limits benchmarking. 3. Performance period is relatively short, suggesting a need for ongoing procurement. 4. This contract supports essential transit operations within the Washington D.C. metro area. 5. The awardee, WMATA, is a public entity, indicating direct service provision. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract value of $42.5 million for a 372-day period is substantial. However, without competitive bids, it is difficult to assess if this represents a fair market price. Benchmarking against similar transit service contracts would be necessary to determine value for money. The fixed-price nature provides cost certainty but may not incentivize efficiency if the price was not rigorously negotiated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to the Washington Metropolitan Area Transit Authority (WMATA). There is no indication that other potential bidders were considered or solicited. This lack of competition means that the government did not benefit from the price discovery mechanisms that typically occur in a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no pressure on the contractor to offer the lowest possible price. This limits the government's ability to secure the best value.

Public Impact

Residents and commuters in the Washington D.C. metropolitan area benefit from continued transit services. Essential ground passenger transportation services are maintained. The contract directly supports the operational workforce of WMATA. The geographic impact is concentrated within the District of Columbia and surrounding transit service areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated costs for taxpayers.
Sole-source award limits transparency in pricing and service delivery.
Absence of performance metrics or benchmarks makes value assessment challenging.

Positive Signals

Award to a public transit authority ensures service continuity.
Fixed-price contract provides cost predictability for the government.
Contract supports a critical public service infrastructure.

Sector Analysis

This contract falls within the broader transportation sector, specifically focusing on public transit operations. The market for public transit services is often characterized by unique operational needs and established public entities like WMATA. While private companies can provide transit services, contracts with public authorities are common for maintaining existing infrastructure and service routes. The $42.5 million award is significant for a single delivery order, reflecting the scale of transit operations.

Small Business Impact

This contract did not include any small business set-aside provisions. As it was awarded sole-source to WMATA, there were no subcontracting opportunities for small businesses directly stemming from this specific award. The impact on the small business ecosystem is neutral in this instance, as no specific efforts were made to engage small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Immediate Office of the Secretary. As a sole-source award to a public entity, the oversight mechanisms may differ from those for competitively awarded contracts. Transparency is limited due to the lack of a competitive process. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

Federal Transit Administration Grants
Metropolitan Planning Organizations
Public Transportation Infrastructure Investment Act

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $42.5 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. IGF::OT::IGF - OTHER FUNCTIONS FY 15 WASHINGTON METRO AREA TRANSIT AUTHORITY (WMATA)

Who is the contractor on this award?

The obligated recipient is WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $42.5 million.

What is the period of performance?

Start: 2014-09-23. End: 2015-09-30.

What is the historical spending pattern for transit services in the Washington D.C. metro area by the Department of Transportation?

Historical spending data for transit services in the Washington D.C. metro area by the Department of Transportation is not directly available in this dataset. However, the award to WMATA for $42.5 million in FY15 suggests a significant, albeit singular, investment. To understand broader patterns, one would need to analyze aggregate spending across various transit providers and contract types within the region over multiple fiscal years. This would involve examining FTA grant data, direct service contracts, and other relevant funding mechanisms to identify trends in investment, service scope, and funding sources. Without this broader context, it's difficult to determine if this specific award represents an increase, decrease, or continuation of prior spending levels.

How does the per-unit cost of this contract compare to similar transit service contracts?

A direct per-unit cost comparison is challenging for this contract due to its sole-source nature and the broad scope of 'All Other Transit and Ground Passenger Transportation.' Without knowing the specific services rendered (e.g., per passenger mile, per vehicle hour, per route), benchmarking is difficult. Typically, competitive contracts allow for the analysis of bids based on standardized metrics, enabling a comparison of efficiency and cost-effectiveness. In this case, the absence of competition means there is no readily available benchmark. To perform a comparison, one would need to identify contracts with similar service characteristics, geographic scope, and operational models, and then attempt to normalize their costs, which is a complex analytical task.

What is the track record of the Washington Metropolitan Area Transit Authority (WMATA) in delivering transit services?

The Washington Metropolitan Area Transit Authority (WMATA) is a well-established public agency responsible for providing public transportation in the Washington D.C. metropolitan area. Its track record includes operating a large bus and rail network, serving millions of riders annually. WMATA has a long history of service delivery, though like many large public transit systems, it has faced challenges related to funding, infrastructure maintenance, and operational efficiency. Its performance is generally measured by ridership, on-time performance, safety records, and financial stability. As a public entity, its operations are subject to public scrutiny and oversight from its member jurisdictions and federal agencies.

What are the potential risks associated with awarding transit services on a sole-source basis?

The primary risks associated with awarding transit services on a sole-source basis include: 1. **Higher Costs:** Without competition, the contractor may not be incentivized to offer the lowest possible price, potentially leading to inflated costs for the government and taxpayers. 2. **Reduced Innovation:** A lack of competitive pressure can stifle innovation in service delivery, technology adoption, or operational efficiencies. 3. **Lack of Accountability:** While WMATA is a public entity, a sole-source award reduces the leverage the government has to enforce specific performance standards or seek alternative providers if performance is unsatisfactory. 4. **Limited Transparency:** The absence of a competitive bidding process makes it harder to assess the fairness of the pricing and the overall value proposition. 5. **Potential for Complacency:** The incumbent provider may become complacent due to the lack of competitive threat.

How does this contract fit within the broader context of federal funding for public transportation?

This contract represents a direct federal expenditure for transit services, likely complementing broader federal funding mechanisms for public transportation. The Department of Transportation, through agencies like the Federal Transit Administration (FTA), provides significant funding to transit agencies nationwide through grants, loans, and other programs aimed at improving and expanding public transportation. While this specific award is a direct contract for services, it aligns with the federal government's objective of supporting and enhancing public transit infrastructure and operations, which are crucial for economic development, environmental sustainability, and mobility. The $42.5 million signifies a substantial federal investment in maintaining and operating transit services within a major metropolitan area.

Industry Classification

NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › All Other Transit and Ground Passenger Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 5TH ST NW, WASHINGTON, DC, 20001

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,481,323

Exercised Options: $42,481,323

Current Obligation: $42,481,323

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTOS5911D00510

IDV Type: IDC

Timeline